Do the final cut pro 7.0.3 projects work on FCP 10.8.1?

• Check out the app called "Send to X" in the App Store. I have used it many times to migrate an old FCP 7 project to Final Cut Pro 10, and now 11.1. It gets things about 98% correct. You may have to make some small tweaks to the project to get it perfect.

Can't, the XML files are not compatible, right off the bat, nope.

BUT, there are some workarounds. Not sure if DeVincie Resolve will read FCP 7 XML files, but that would be one route if it did. There's an app called X2Pro that translates XML files between apps. It's not going to be without glitches.